Bitwise: 15% BTC, gold allocation triples Sharpe Ratio of 60/40 portfolio

A portfolio allocating 15% to gold and Bitcoin significantly outperforms the traditional 60/40 stock-and-bond strategy, according to an analysis by Bitwise. The Block reports that the Sharpe Ratio for the gold and Bitcoin-allocated portfolio is 0.679, nearly three times that of the standard model. Bitwise noted that this finding supports the effectiveness of Ray Dalio's proposed 15% hedge against a decline in the U.S. dollar's value. The asset manager explained that gold serves a defensive role during market downturns while Bitcoin provides upward momentum during recovery periods, a combination that simultaneously lowers volatility and secures profit opportunities.